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Empresas y finanzas

U.S. oil futures fall below $35 on high stocks


    By Christopher Johnson

    LONDON (Reuters) - Front-month U.S. oil futures fell below $35 a barrel on Thursday, dragged down by an overhang of crude oil stocks in the United States and also depressed by concerns over the health of the global economy.

    U.S. crude for March delivery was particularly negative after news on Wednesday of another big build in stocks at Cushing, Oklahoma, the delivery point for NYMEX futures.

    Crude oil stocks at Cushing are now at record levels at around 35 million barrels, close to operational capacity, traders say, and at a level that is forcing up the cost of storage in the area and driving down the value of prompt crude.

    News of another rise in U.S. jobless claims and a slide in stock markets also depressed the oil market, traders said.

    U.S. West Texas Intermediate (WTI) light crude for March delivery was down $1.40 at $34.54 at 1511 GMT (10:11 a.m. EST).

    London Brent crude for March, which was due to expire later on Thursday, was down 26 cents at $44.02, stretching its premium over U.S. oil to around $9.50, not far off record levels above $11.50 hit last month.

    "Post U.S. oil statistics yesterday that showed another build in U.S. crude inventories, we are probably going to see WTI maintain or worsen its discount to Brent," said Harry Tchilinguirian, analyst at BNP Paribas in London.

    TOLL

    Evidence of growing U.S. unemployment had also cast a pall over the market: "The figures confirm economic conditions will endure until at least the third quarter," he said.

    Global economic downturn is taking its toll on oil consumption and supply still appears to be outstripping demand in many parts of the world, despite production cuts by members of the Organization of the Petroleum Exporting Countries.

    Traders said the short-term direction of the market was being dominated by movements in stock markets, which opened lower in New York on Thursday, and the dollar, which rose against a basket of major currencies.

    Oil has tumbled more than 10 percent this week on demand worries and fears a U.S. bank rescue plan would not go far enough to revive the ailing financial sector.

    Oil prices took a battering on Wednesday after the U.S. Energy Information Administration said domestic crude stocks had increased 4.7 million barrels to 350.8 million in the week to February 6, against a forecast for a rise of 3.1 million.